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Amazon "seized and destroyed" over 2 million counterfeit products that sellers sent to Amazon warehouses in 2020 and "blocked more than 10 billion suspected bad listings before they were published in our store," the company said in its first "Brand Protection Report."
In 2020, "we seized and destroyed more than 2 million products sent to our fulfillment centers and that we detected as counterfeit before being sent to a customer," Amazon's report said. "In cases where counterfeit products are in our fulfillment centers, we separate the inventory and destroy those products so they are not resold elsewhere in the supply chain," the report also said.
Third-party sellers can also ship products directly to consumers instead of using Amazon's shipping system. The 2 million fakes found in Amazon fulfillment centers would only account for counterfeit products from sellers using the "Fulfilled by Amazon" service.
The counterfeit problem got worse over the past year. "Throughout the pandemic, we've seen increased attempts by bad actors to commit fraud and offer counterfeit products," Amazon VP Dharmesh Mehta wrote in a blog post yesterday.
Counterfeiting is a longstanding problem on Amazon. Other problems on Amazon that harm consumers include the sale of dangerous products, fake reviews, defective third-party goods, and the passing of bribes from unscrupulous sellers to unscrupulous Amazon employees and contractors. One US appeals court ruled in 2019 that Amazon can be held responsible for defective third-party goods, but Amazon has won other similar cases. Amazon is again arguing that it should not be held liable for a defective third-party product in a case before the Texas Supreme Court that involves a severely injured toddler.
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